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What is a treasury stock

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Reference no: EM131680044

Question - On Oct 1, ABC corporation authorized two things: 1. the issuance of additional 1000 shares of common stock. 2. the issuance of 500 shares of common stock dividends. (par value: $10/sh, market value: $15/sh as of 10/1)

  • Would these two activities affect the stockholder's equity?
  • What is a Treasury Stock and what is its normal balance? How is it reported in the stockholder's equity?

Reference no: EM131680044

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